Lessons Learned from a Government Shutdown: Preparing for Financial Uncertainty

Last month, on November 12, 2025, the longest government shutdown in US history ended. Many of you — our valued Members — were directly affected, and Armed Forces Mutual stood firmly beside you during those challenging weeks. 

Throughout the shutdown, we heard from Members who appreciated the flexibility we provided: the option to delay premium payments through extended grace periods, and the ability to switch payment methods between EZ-Pay, checking accounts, credit cards, or government allotments to keep policies current despite interrupted income. 

Now that the shutdown has ended, we want to share three critical lessons that can help all of us prepare for future financial uncertainties:

1. Build an Emergency Fund

Aim to set aside enough to cover four to six months of expenses. This financial cushion protects you not only during government shutdowns, but also in case of unexpected job loss, major medical expenses, or other urgent financial needs.  

2. Use Your Whole Life Insurance Policy 

For instance, you can take a policy loan of up to 75% of your accumulated cash value and pay interest at just 1% over the current crediting rate, which will be a low 5.75% in 2026.*  

During a shutdown, you’ll be able to meet your short-term needs and repay the loan once your income resumes, minimizing interest costs while keeping your coverage intact. Best of all, when you’re not experiencing an emergency, each one of your premium payments builds your cash value, which grows tax-deferred at an industry-leading crediting rate while giving your family the protection they deserve.  

3. Stay Alert to Scams

Financial stress creates opportunities for scammers. During the shutdown, we noticed an uptick in fraudulent "get rich quick" schemes targeting vulnerable individuals. Remember: never share personal or financial information with anyone you haven't thoroughly verified. 

See also: Government Shutdown: How Military Families Can Prepare Financially 

Looking Ahead 

While we hope future shutdowns can be avoided, financial emergencies of various kinds are inevitable. By applying these lessons now — building reserves, understanding your policy benefits, and staying vigilant — you'll be better prepared to weather whatever challenges lie ahead. 

Armed Forces Mutual remains committed to supporting you through uncertain times. If you have questions about your policy, or if you need assistance with financial planning, please don't hesitate to reach out. Call our Policy Services team at 800-522-5221 or email policyservices@aafmaa.com.